BlackRock’s Stablecoin Strategy Aligns with GENIUS Act, Signaling Institutional Crypto Adoption

BlackRock is overhauling its Select Treasury Based Liquidity Fund (BSTBL) to comply with the GENIUS Act, a U.S. regulatory framework for stablecoin issuers. The fund now features a Treasury-focused mandate and a 5 p.m. ET trading cutoff, streamlining reserve management for compliant token issuers.

The GENIUS Act, signed into law in July, establishes standards for reserve assets, anti-money laundering, and reporting requirements. Stablecoin issuance is projected to grow from $300 billion today to $2 trillion by 2028, with public consultation on the rules already underway.

BlackRock’s move complements its expanding digital asset offerings, including a Bitcoin ETF, ether ETP, and tokenized liquidity fund. The firm is also exploring tokenized funds tied to real-world assets, positioning itself at the forefront of institutional crypto adoption.

The rise of GENIUS-aligned stablecoins, such as Anchorage Digital Bank’s USDtb, underscores the growing institutional focus on compliant cash-market products. Analysts predict onchain capital could exceed $100 trillion within five years, highlighting the transformative potential of tokenized market infrastructure.